Archer Aviation’s Strategic Positioning and Growth Potential: Buy Rating Reaffirmed with $18 Price Target

H.C. Wainwright analyst Amit Dayal reiterated a Buy rating on Archer Aviation (ACHR – Research Report) today and set a price target of $18.00.

Amit Dayal has given his Buy rating due to a combination of factors that highlight Archer Aviation’s strategic positioning and growth potential. The recent executive order aimed at accelerating the deployment of electric aircraft and drones is a significant catalyst, as it is expected to enhance market opportunities within the public safety, defense, and military sectors. Archer’s existing collaborations with the military and partnerships, such as the one with Anduril, position the company well to capitalize on these opportunities.
Additionally, Archer’s business model, which includes direct sales of eVTOL units and urban air mobility flight services, is projected to generate substantial revenue growth. The company plans to scale production significantly, with expectations of manufacturing over 400 eVTOLs annually by 2031. The financial projections indicate a strong revenue trajectory, with estimates reaching approximately $1 billion by 2028, supported by robust gross margins. These factors, combined with a discounted cash flow analysis, underpin the raised price target of $18 and the reaffirmation of the Buy rating.

In another report released on June 3, Canaccord Genuity also maintained a Buy rating on the stock with a $13.50 price target.